Greedflation

[adrina]

https://thehill.com/policy/finance/...in-third-quarter-amid-40-year-high-inflation/

Corporate profits in the nonfinancial sector hit a record high of $2.08 trillion in the third quarter even as 40-year-high inflation continues to squeeze American consumers.


Profits adjusted for inventories and capital consumption rose $6.1 trillion from the second to third fiscal quarters, the Commerce Department reported Wednesday, continuing a red-hot recovery from the flash recession caused by pandemic shutdowns.


Following a two-quarter dip in 2020, quarterly profits have surged by more than 80 percent over the last two years from around $1.2 trillion to more than $2 trillion, adding weight to arguments that the private sector is driving inflation by exploiting consumer expectations to keep prices elevated.


The “Fed should make clear that rising profit margins are spurring inflation,” UBS chief economist of global wealth management Paul Donovan wrote in the Financial Times in November, asking Fed chair Jerome Powell to elucidate this point as he shepherds the U.S. central bank to raise interest rates and slow economic activity.


“Companies have passed higher costs on to customers. But they have also taken advantage of circumstances to expand profit margins. The broadening of inflation beyond commodity prices is more profit margin expansion than wage cost pressures,” he wrote, adding that “resilience in demand has given companies the confidence to raise prices faster than costs.”

 

[AsmodeusPrime]

GET SOME!!!!!!

 

[Dribble]

Not surprising. But Americans have a choice...doesn't have to be like this. Econ 101

Case in point. I have a storage unit in Wyoming. They raised their rates twice within the year citing "inflation". Now...tell me what costs associated with those storage units have increased? Exactly right...none. But because they rely on that income to cover their personal costs...well they thought they would just pass that on to their customers and claim "inflation". I gave my notice. I have had that unit for near on 10 years. Let some other fuck pay for their lifestyle.

 

[AsmodeusPrime]

Not surprising. But Americans have a choice...doesn't have to be like this. Econ 101

Case in point. I have a storage unit in Wyoming. They raised their rates twice within the year citing "inflation". Now...tell me what costs associated with those storage units have increased? Exactly right...none.

You mean other than their energy, employees, taxes and all the other unforeseen costs of doing business like the time Karen backed her U-haul into a building or the gate, cleaning out units that have been abandoned etc.

Everyone's costs have gone up. Your assertion otherwise shows how removed from reality you really are.

But because they rely on that income to cover their personal costs...well they thought they would just pass that on to their customers and claim "inflation".

Yup, the companies aren't going to eat US government inflicted inflation for commie feelings. Why should they??

I gave my notice. I have had that unit for near on 10 years. Let some other fuck pay for their lifestyle.

I"m sure they're heartbroken.

But will you stop using every other business in the USA for doing the same?? Going to go fully off the grid and never interact with the rest of American society again??? Or is that ol' storage locker you didn't really need anyhow just an nothingburger virtue signal?

 

[Dribble]

You mean other than their energy, employees, taxes and all the other unforeseen costs of doing business like the time Karen backed her U-haul into a building or the gate, cleaning out units that have been abandoned etc.

Everyone's costs have gone up. Your assertion otherwise shows how removed from reality you really are.



Yup, the companies aren't going to eat US government inflicted inflation for commie feelings. Why should they??



I"m sure they're heartbroken.

But will you stop using every other business in the USA for doing the same?? Going to go fully off the grid and never interact with the rest of American society again??? Or is that ol' storage locker you didn't really need anyhow just an nothingburger virtue signal?

What energy costs? Come on bright one. What employees? Come on bright one. What taxes increased? Come on bright one. Do your fucking research before making a total ass of yourself

 

[AsmodeusPrime]

What energy costs? Come on bright one.

They don't have any office, gates, lighting?? No climate control?? Most storage places with shitty weather I've lived have those things.

It's just a bunch of storage units in a dead field and the owners operate out of what?? A log cabin?? Doing all their paperwork and legal shit by quill and home made paper, ink and quills???

Come on bright one.

What employees? Come on bright one.

Nobody works there???

It's just a help yourself storage facility.... nobody monitors or takes care of the property there???

Nobody bills you?? Sends you any letters?? Helped you fill out your lease on your unit??? None of that hua??

Most facilities I've been to in the 1st world (and developing nations for that matter) have a grounds keeper of sorts and someone to a basic customer service role, and someone if not a couple of people in an office somewhere. Even the most hands off businesses like self serve car washes and laundry mattes are still going to need some folks to manage the site(s) physically and legally, and it costs money to do that. Come on bright one.

What taxes increased? Come on bright one.

Maybe not in Wyoming, they are pretty economically liberal. In places with property taxes your property value goes up because inflation? So does the number of dollars you have to pay to stay open. Licensing/permitting/certification fees often tied to business type, scale or value.... have gone up in most places Those are effectively taxes.

Do your fucking research before making a total ass of yourself

I'm not the one who thinks storage facility businesses don't employ anyone or have business expenses.

 

[Dribble]

They don't have any office, gates, lighting?? No climate control?? Most storage places with shitty weather I've lived have those things.

It's just a bunch of storage units in a dead field and the owners operate out of what?? A log cabin?? Doing all their paperwork and legal shit by quill and home made paper, ink and quills???

Come on bright one.



Nobody works there???

It's just a help yourself storage facility.... nobody monitors or takes care of the property there???

Nobody bills you?? Sends you any letters?? Helped you fill out your lease on your unit??? None of that hua??

Most facilities I've been to in the 1st world (and developing nations for that matter) have a grounds keeper of sorts and someone to a basic customer service role, and someone if not a couple of people in an office somewhere. Even the most hands off businesses like self serve car washes and laundry mattes are still going to need some folks to manage the site(s) physically and legally, and it costs money to do that. Come on bright one.



Maybe not in Wyoming, they are pretty economically liberal. In places with property taxes your property value goes up because inflation? So does the number of dollars you have to pay to stay open. Licensing/permitting/certification fees often tied to business type, scale or value.... have gone up in most places Those are effectively taxes.



I'm not the one who thinks storage facility businesses don't employ anyone or have business expenses.

No bright one. It is a long shed....with doors. Do you know what inflation is? What components go into it? Food....storage units don't eat food. Energy. No increases in rates...so no inflation there. How about fuel? Nope. How about increase in costs for commodities? Nope. No tax increases....no inflation there. No increase in property rates....no inflation there.

Starting to see the issue retarded one? On a personal level....their costs are increasing. So they passed that on through their service of rentals? Shit like that is the problem. You can't have companies making record profits if they aren't passing that on.

Let me show you how it works. I buy a barrel of oil at $50. I expect 10% profit. I must charge $55 to my customers. Now....if the price of oil increases to $100. I just made $5 more than I did and I provided no increase in service. That is what is happening. It is greed

 

[Lazaran]

https://thehill.com/policy/finance/...in-third-quarter-amid-40-year-high-inflation/

The key point of this article is the focus on messaging. Chairman Powell SHOULD make CLEAR on a regular basis that CORPORATE PROFITEERING (AND PUTIN) is driving excessive prices for consumers.. WILL he???

On a slightly positive note, gas prices have dropped significantly, so the average person is getting some relief. - Still not enough.

The troubles with the railroad workers also bears watching. And the messaging on what is being done to avert a strike needs to be clearly articulated.

 

[Pad_Foot]

Oil companies proved we are willing to pay $$$
It's a set DEMAND!
Why the fuck should they lower their prices?
Competition ?? HA!! Yeah RIGHT!
California keeps getting ratcheted higher and higher and higher.
Tax the FUCK out of the oil industry and they put money into advertising and their politicians to SQUEEL!!
Coal? Same deal
In California, PG&E is trying to gut solar power. WHY? They don't profit as much from SOLAR.
NO thought in Capitalism for the PUBLIC GOOD or the FUTURE.
Corporations ain't American. Their blood isn't red white and blue or even RED.
It's GREEN!! Period.
CEO's.........??? WAY THE FUCK OVER PAID !!

 

[AsmodeusPrime]

No bright one. It is a long shed....with doors.

Your neighbors shed isn't a commercial storage facility.

 

[coati]

Yes, Greedflation is the new way to make bigger profits while selling or moving the same or less units. What could possibly go wrong with consolidating corporate ownership of major supply chain resources and promoting the illusion that this is a natural progression in a "competitive" market?

Certainly we can trust the corporate giants to not engage in price fixing, because they would never lie to the public about "shortages" or supply chain costs.

Lately I noticed even the made-for-TV products ads are pushing the supply-chain-shortage angle. Limited availability! Act now! Panic! Be very afraid! Don't be left out!

 

[adrina]

https://thehill.com/policy/finance/3723117-wholesale-used-car-prices-plummet-as-retail-prices-soar/

The wholesale price of used cars is falling off a cliff while the retail prices that car shoppers are paying is way up, suggesting dealers are making a killing while consumers are taking a bath.


Used car prices declined 2 percent from September in the first half of October and are down 10.3 percent from a year ago, according to The Manheim Used Vehicle Index published on Monday.


Wholesale used luxury car prices are down 13.5 percent while used sport utility vehicles are down 12.3 percent and pick-up trucks are down 8.4 percent.


Meanwhile, the retail price that car shoppers are paying for used cars has increased 7.2 percent since last year, according to the Department of Labor’s latest consumer price index.


The fact that dealers are paying less for cars than they were a year ago while shoppers are paying more suggests that dealers are holding onto the difference and are driving inflation in the used car market, economists say.

 

[Lazaran]

https://thehill.com/policy/finance/3723117-wholesale-used-car-prices-plummet-as-retail-prices-soar/

My favorite part from the article:

“It is … important to remember that we had a large shift of income shares from wages to profit in the pandemic. We can argue whether this was due to the exploitation of monopoly power or simply an outcome of shortages created by the pandemic and the war [in Ukraine], but the shift to profits is undeniable,” Baker wrote in a recent blog post.

That ^ is the bottom line.

 

[Buffalogurl]

Not surprising. But Americans have a choice...doesn't have to be like this. Econ 101

Case in point. I have a storage unit in Wyoming. They raised their rates twice within the year citing "inflation". Now...tell me what costs associated with those storage units have increased? Exactly right...none. But because they rely on that income to cover their personal costs...well they thought they would just pass that on to their customers and claim "inflation". I gave my notice. I have had that unit for near on 10 years. Let some other fuck pay for their lifestyle.

Hey it's always wise to relocate your meth lab every now and then .. calm down buba... I'm just stepping on your chain lighten up a little...enjoy your day

 

[AsmodeusPrime]

"The wholesale price of used cars is falling off a cliff"

LOL....well, beater cars were super over priced. That's what happens to overpriced markets, they fall out.

Unfortunately anything with any sort of collector/cult following is still just going up.

 

[BabyBoomer50s]

The people quoted in The Hill didn’t define the threshold for acceptable profit margins. Nor did they address risk, capital investment, market volatility, payback period, and other factors that us capitalists consider. Pursuit of profit is a beautiful thing.

 

[Lazaran]

There will always be flatulent business and corporate gaslighters, like BabyBoobs, who spew diversionary clouds of distractions in an attempt to confuse matters.

The bottom line is the bottom line.

Business and corporate profiteering is real.

Consequences should be forthcoming.

 

[BabyBoomer50s]

There will always be flatulent business and corporate gaslighters, like BabyBoobs, who spew diversionary clouds of distractions in an attempt to confuse matters.

The bottom line is the bottom line.

Business and corporate profiteering is real.

Consequences should be forthcoming.

How do you measure “greed?” What is the standard for defining greed? What companies are going to face “consequences?” Pursuit of profit what drives capitalism.

 

[Fuzzy1975]

How do you measure “greed?” What is the standard for defining greed? What companies are going to face “consequences?” Pursuit of profit what drives capitalism.

Greed is not a measurable item, it is best described as an emotion. Pursuit of profit is fine, until the point of collusion between competitors.

The market will correct itself, as long as it is operating independently of price fixing. If there is price fixing, then it is the duty of Government to intervene.

 

[Lazaran]

BabyBoobs keeps trying.

The truth of reality remains.

Consequences come in many forms.

I won’t list them, because I’m the one in control of the narrative here.

 

[Lazaran]

Greed is not a measurable item, it is best described as an emotion. Pursuit of profit is fine, until the point of collusion between competitors.

The market will correct itself, as long as it is operating independently of price fixing. If there is price fixing, then it is the duty of Government to intervene.

BabyBoobs knows that ^.

The idiot is just trying to regain control of the narrative…….

and failing.

 

[BabyBoomer50s]

Greed is not a measurable item, it is best described as an emotion. Pursuit of profit is fine, until the point of collusion between competitors.

The market will correct itself, as long as it is operating independently of price fixing. If there is price fixing, then it is the duty of Government to intervene.

The Hill article says profits are up across industries in the non financial sector. In other words, the vast majority of industries. The story doesn’t make any claims of inter-industry collusion or price fixing. Nor does it suggest collusion within any specific industry. One of the companies that had a good quarter mentioned in the article is Pepsi. It’s not like all the soda companies got together and colluded to squeeze consumers.

The Hill story throws the word “greed” out there without defining what that even means, or providing any specific examples. Pepsi was greedy? Give me a break. Lots of companies reported good earnings last quarter. That’s good news! Businesses exist to deliver goods and services for a profit.

 

[Fuzzy1975]

That’s good news! Businesses exist to deliver goods and services for a profit.

Great, btw did you bitch about the price of gas, or not?

 

[BabyBoomer50s]

BabyBoobs keeps trying.

The truth of reality remains.

Consequences come in many forms.

I won’t list them, because I’m the one in control of the narrative here.

Cant define how “greed” is measured, which companies are facing “consequences”, or what those consequences might be. Must be a closely guarded secret. Lol.

 

[BabyBoomer50s]

Great, btw did you bitch about the price of gas, or not?

I absolutely did not attribute high gas prices to corporate greed. I attribute gas prices to supply (ex. refining capacity) and demand conditions, augmented by taxes and regulations. Californians get hit especially hard on gas prices compared to the rest of the country.